DB / DC Administrator
Karel-Gordon & Associates
in IL, Telecommute

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Pentegra
in NC

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Illinois Law Firm / TPA Firm
Telecommute

Retirement Plan Administrator
Prime Pensions, Inc.
in NJ

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Understanding Fees Found in Retirement Plans
August 29, 2018 WEBCAST
Multnomah Group

Structuring Options for ESOP Transactions: Advanced Techniques for ERISA Counsel and Plan Sponsors
September 25, 2018 WEBCAST
Strafford

Executive Comp - New Takes on Old Issues: Perks, Clawbacks, and the Rule 701/Form S-8 Concept Release
September 17, 2018 WEBCAST
American Bar Association Joint Committee on Employee Benefits [JCEB]

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Text of IRS PLR 201833012 Permitting 401(k) Employer Nonelective Contributions Conditioned on Student Loan Repayments (PDF)

"Taxpayer would make an employer nonelective contribution on behalf of an employee conditioned on that employee making student loan repayments ('SLR nonelective contribution').... If an employee participates in the program, the employee would still be eligible to make elective contributions to the plan but would not be eligible to receive regular matching contributions with respect to those elective contributions while the employee participates in the program.... [The] proposal to amend the Plan to provide SLR nonelective contributions under the program will not violate the 'contingent benefit' prohibition of section 401(k)(4)(A) and section 1.401(k)-1(e)(6). This ruling is based on the assumption that Taxpayer will not extend any student loans to employees that will be eligible for the program." [Issued May 22, 2018; released Aug. 17, 2018.]
Internal Revenue Service [IRS]

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Text of PBGC Submission for OMB Review and Request for Public Comments on Proposed Revisions to Form 5500 Annual Reporting (PDF)

"PBGC is proposing modifications to the 2019 Schedule R (Retirement Plan Information), Form 5500-SF, and Schedule SB (Single-Employer Defined Benefit Plan Actuarial Information), and their related instructions.... PBGC also is proposing minor modifications to the Form 5500 Series to improve the accuracy of reported information.... PBGC is proposing to modify Schedule R to obtain information from single-employer plans related to unpaid minimum required contributions.... Because many small PBGC-insured plans are not required to complete Schedule R (i.e., plans that file Form 5500-SF), PBGC also is proposing to add a similar question about missed contributions to Form 5500-SF.... With regard to the Schedule SB form and instructions, PBGC is proposing to modify line 23 to eliminate three boxes representing mortality tables that are no longer applicable." Pension Benefit Guaranty Corporation [PBGC]

IRS Announces Submission Extension for Cycle 3 Pre-Approved Defined Contribution Plans (PDF)

"Among the issues that the IRS [still] needs to address are: [1] Clarifications on the extent of reliance on an opinion letter; [2] The new requirement to exclude the trust provisions from a pre-approved plan document; [3] Issues relating to interim amendments; [4] The need for updated submission forms; [5] Guidance on Church Plan provisions. Without clarification from the IRS, these issues will make Cycle 3 plan document submissions uncertain and more time consuming for document drafters and adopters." ASC

Analyzing the Duty of Loyalty in Stock Drop Cases

"The standards to be applied with respect to a prudence claim are objective, e.g., 'could a prudent fiduciary in the defendant's position not have concluded that publicly disclosing negative information would do more harm than good.' The standards to be applied with respect to a loyalty claim are, however, subjective -- did the fiduciary act out of a conflicting motive? The court provided [a] (simple and useful) illustration of this distinction[.]" [ In re: Wells Fargo ERISA 401(k) Litigation , No. 16-3405 (D. Minn. July 19, 2018)]
October Three Consulting

Washington Metro Misses Out on Chance to Switch to 401(k) for New Hires

"After failing to reach a new agreement, a three-member arbitration board stepped in. The board ordered Metro to provide $82 million in wage increases and for employees to pay a larger share of their health-care costs, but it did not address the larger issue of $2.8 billion in unfunded liabilities for pensions and retiree health care. The order also did not include an overtime cap for pension calculations that was sought by Metro officials." Pensions & Investments

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Former Lehman Brothers Investor Believes Blockchain Technology Can Fix Broken Pension System

"According to [Anastasia Andrianova, a former Lehman Brothers private equity investor and Founder and CEO of Akropolis], a lack of transparency is at the heart of the many problems facing current pension systems.... Akropolis is working on building a protocol to provide a blockchain-based infrastructure to decentralize pensions. The platform aims to gather fund managers, institutional users, individual users and developers under a single ecosystem to provide increased transparency for pension funds.... [T]aking a blockchain based approach to the pension system also means that no single entity is in control of the ledger, ensuring that transparency can be built-in at the protocol level." Forbes

Testimony of Institutional Retirement Income Council to ERISA Advisory Council on Lifetime Income Solutions as a QDIA (PDF)

12 pages. "[O]ur DC system already has a plethora of lifetime income solutions -- but adoption and take [up] rates lag.... RESA will provide the legislative catalyst needed to increase adoption and market acceptance. Service providers will then have a marketplace and incentives to continue investing in development and refinement of institutional income products." Institutional Retirement Income Council [IRIC]

More Americans Are Going Bankrupt in Retirement

"Seniors now account for 12.2 percent of all bankruptcy filers, a significant increase from 2.1 percent in 1991.... The increase has been so dramatic, it cannot just be attributed to a larger senior population." National Public Pension Coalition

Testimony of American Academy of Actuaries to ERISA Advisory Council on Lifetime Income Solutions as a QDIA (PDF)

"Steps can be taken to improve the util ization of QLACs: [1] Through regulations or legislation, allow variable/index-based returns; eliminate unisex pricing; allow aggregation among DC plans for 25 percent rule. [2] Modify annuity selection safe harbors in order to remove fiduciary concerns. [3] Consumer education, starting with efforts by the DOL." American Academy of Actuaries

Benefits Considerations for Seasonal Employees Transitioning to Ongoing Positions

"Here are several things to keep in mind when hiring or rehiring a seasonal employee into a year-round, benefits-eligible role. [1] Age of participation.... [2] Credit for retirement plan eligibility service.... [3] Health plan measurement periods.... [4] Disclosures." Morgan Lewis

Using Social Media for Employee Benefits Communication

"[1] Survey your employees.... [2] Select the platform(s) that make the most sense for your employees and create a strategy for how you'll use it, including a communications plan for rolling it out.... [3] Craft a company social media policy that defines appropriate content and conduct.... [4] Consult with your legal team to draft a terms of agreement and privacy policy ... [5] [A]ssign a human resources staff member or marketing employee to monitor and respond to employee questions and concerns in a timely manner.... [6] Develop a monthly communication calendar to keep your content organized and build in dates to ensure you don't miss key opportunities to post timely content." Willis Towers Watson

Tips to Enliven Your Open Enrollment Communication (PDF)

"[1] [I]nterject some humor ... [2] Freshness can be inviting and says 'Read me!' to your employees.... [3] Have a goal to work toward and to be specific about what you want to achieve ... [4] Is your current enrollment guide a little bit like the old phone book? Too many pages? In a format few people value? Every year? ... [5] [Develop] a narrative that links the employee experience to the organization's purpose and position in the market." Willis Towers Watson

Division of Child Support Wants Entire Account Balance; Tax Withholding Problem

The Division of Child Support wants essentially the participant's entire account for back child support, and there is not enough left in his account to gross up to account for the 10% voluntary withholding that applies under 3405(b). Under 3405(b), 10% is the default (because this is not rollover eligible) but the participant is permitted by that statute to elect anywhere from 0% to 100% withholding. This does not do much to help the division of child support get the exact amount that they want. It seems this only works if a QDRO may also order the participant to elect no withholding on this distribution so that the plan may pay the full amount "net" of (0%) withholding. But I cannot find any guidance or examples of this being ordered. BenefitsLink Message Boards

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